My 3 Favorites from the 20 Most Recommended Financial Dividend Shares

Author's Avatar
Jan 15, 2013
Financial dividend stocks with highest buy recommendation originally published at "long-term-investments.blogspot.com." One sector I’ve tried to avoid in the past was the financial sector. I have only stocks from financial services provider like Thomson Reuters or some Stock Exchange Operator like the NYX. Some major investors and hedge funds have started bets on the post-financial recovery earlier with no greater success.

The whole financial industry is still in a crisis and this should go on. I don’t know how long. Jobs in the industry are still degraded and as long as the interest rates are low, there will be more and more jobs degraded.

Despite the bad sector news, last year, the financial sector was the top performing bet with a 27.5 percent gain. I missed this opportunity but as of today, I cannot evaluate all the risks within the sector. I have no idea what kind of risk assets banks have and how they manage them.

What do you think about the sector? Do you have some shares from banks or related industries? Let me know and leave a comment in the box below.

Today, I would like to show you the 20 best recommended financial stocks with a higher capitalization (over USD2 billion). Below the results are five with a high yield.

Here are my favorite stocks:

SLM Corp (SLM) has a market capitalization of $8.02 billion. The company employs 6,600 people, generates revenue of $5.756 billion and has a net income of $599 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $951 million. The EBITDA margin is 16.52 percent (the operating margin is 16.10 percent and the net profit margin 10.41 percent).

Financial Analysis: The total debt represents 95.15 percent of the company’s assets and the total debt in relation to the equity amounts to 3,508.79 percent. Due to the financial situation, a return on equity of 12.76 percent was realized. Twelve trailing months earnings per share reached a value of $2.17. Last fiscal year, the company paid $0.30 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.01, the P/S ratio is 1.39 and the P/B ratio is finally 1.89. The dividend yield amounts to 2.88 percent and the beta ratio has a value of 1.36.

Prudential (PUK) has a market capitalization of $38.18 billion. The company employs 25,414 people, generates revenue of $58.884 billion and has a net income of $2.288 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $11.641 billion. The EBITDA margin is 19.77 percent (the operating margin is 5.01 percent and the net profit margin 3.89 percent).

Financial Analysis: The total debt represents 4.02 percent of the company’s assets and the total debt in relation to the equity amounts to 128.18 percent. Due to the financial situation, a return on equity of 17.05 percent was realized. Twelve trailing months earnings per share reached a value of $1.95. Last fiscal year, the company paid $0.81 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.28, the P/S ratio is 0.65 and the P/B ratio is finally 2.75. The dividend yield amounts to 2.72 percent and the beta ratio has a value of 1.83.

Deutsche Bank AG (DB) has a market capitalization of $45.78 billion. The company employs 100,474 people, generates revenue of $46.537 billion and has a net income of $5.772 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $22.740 billion. The EBITDA margin is 48.86 percent (the operating margin is 16.22 percent and the net profit margin 13.02 percent).

Financial Analysis: The total debt represents 60.30 percent of the company’s assets and the total debt in relation to the equity amounts to 2,444.04 percent. Due to the financial situation, a return on equity of 8.09 percent was realized. Twelve trailing months earnings per share reached a value of $4.06. Last fiscal year, the company paid $1.00 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.18, the P/S ratio is 1.04 and the P/B ratio is finally 0.63. The dividend yield amounts to 1.88 percent and the beta ratio has a value of 2.27.

Take a closer look at the full list of the 20 most recommended financial dividend stocks. The average P/E ratio amounts to 15.48 and forward P/E ratio is 12.41. The dividend yield has a value of 3.34 percent. Price to book ratio is 1.81 and price to sales ratio 4.21. The operating margin amounts to 12.23 percent and the beta ratio is 1.59. Stocks from the list have an average debt to equity ratio of 4.88.

Related stock ticker symbols:

NCT, ARCC, STWD, HTA, WPC, OZM, BNS, TD, GZT, SLM, CS, PUK, DB, MTU, SEIC, IBN, UBS, L, HDB, COF

Selected Articles:

· My Best Financial Stock Picks For 2013

· Best Financial Stock Picks For 2012

· 20 Highly Recommended Basic Material Stocks

· 20 Best Recommended Technology Stocks

· Most Recommended Healthcare Stocks For 2013

(Subscribe to my blog via RSS Feed or E-Mail. Alternatively, you can follow me on Facebook or Twitter.)